The Federal Reserve, as we have noted, is the Prime Mover of crony capitalism. It is a politburo. It is a central planning committee. It is a tool by which the big banks are backstopped with the wealth of the American people. It should be audited. It should be opened.
This is what the dollar has done under the Fed.
In fairness it’s not JUST the Fed. Other central banks have done their part for other currencies as well.
Fed advocates like Paul Krugman (featured in the attached article) fear fundamentally that the citizenry will one day lose confidence in a dollar which is conjured out of nothing. So long as the major media, the big banks, Keynesian economists like himself, and the politicians are all singing from the same song sheet the game can continue. If however someone was to really get through to the American people, and was to effectively highlight the insanity of the Fed system, well then all bets are off for the crony capitalists. Krugman would have to spend the rest of his life cuddling his cat in disgrace. Which would be just fine.
The anti audit the Fed stuff we’ve seen in recent weeks is coming because the Federal Reserve is scared. All the flack being shot isn’t because the Fed’s friends are actually afraid that an audit would somehow throw the economy off the rails. No, they are afraid of an audit because they’ve bought completely into a dishonest fiat money system and they are afraid that they will have to stand naked before history. That’s what they fear.
Audit the Fed and then end it. Make ’em stand naked.
An empirical review published in 2011 by the Bank of England — not exactly a “fever swamp” — of the performance of the fiduciary currency standard relative to the performance of the Bretton Woods gold-exchange standard and the classical gold standard, found, as then summarized by Forbes.com contributor Charles Kadlec:
Economic growth is a full percentage point slower, with an average annual increase in real per-capita GDP of only 1.8%
World inflation of 4.8% a year is 1.5 percentage point higher;
Downturns for the median countries have more than tripled to 13% of the total period;
The number of banking crises per year has soared to 2.6 per year, compared to only one every ten years under Bretton Woods;
The number of currency crises has increased to 3.7 per year from 1.7 per year;
Current account deficits have nearly tripled to 2.2% of world GDP from only 0.8% of GDP under Bretton Woods.